REG - Pennant Int. Group - Sale of Pennant Court

Pennant InternationalAnnouncement

03/08/2022 07:15

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RNS Number : 7414U  Pennant International Group PLC  03 August 2022

 
 

 

FOR IMMEDIATE RELEASE
 

3 August 2022

 

PENNANT INTERNATIONAL GROUP PLC

 
                    Sale of Pennant Court

 

 

Pennant International Group plc (AIM:PEN) ("Pennant", the "Group" or
"Company"), a leading global provider of training technology and integrated
product support solutions, announces that it has exchanged contracts for the
sale of its facility known as Pennant Court.

 

With the Group's increasing software focus and reduced reliance on
resource-intensive hardware engineering activities, earlier this year the
Board commissioned a comprehensive review of the Group's UK facilities.
Recognising a reduced requirement for space at its Cheltenham operating sites,
the Board decided to market for sale the Group's former Cheltenham head
office, Pennant Court.

 

The Pennant Court site comprises a single unit subdivided between offices and
a warehouse, totalling over 19,000 square feet of floor space in aggregate.

 

An offer for Pennant Court was accepted in May this year and contracts have
now been exchanged for the sale of the freehold title. The vendor is Pennant
International Limited and the buyer is Pripco Limited. Completion is scheduled
for 19 August 2022. Pennant has not entered into any leaseback arrangement in
relation to any part of the property and will vacate the site entirely upon
completion.

 

The sale price is £2.1 million (plus VAT), which will be payable in full, in
cash on completion.  After transaction expenses, the sale is expected to
realise a profit of £0.2 million. The Board considers that the sale price
fairly reflects Pennant Court's market value.

 

The sale proceeds will be used to reduce the Group's overdraft, which
currently stands at circa £4.2 million overdrawn (against a temporary limit
of £5 million) such that immediately after the sale, the Group expects to be
around £2.1 million overdrawn against an updated limit of £3 million
(adjusted for the release of the asset from the bank's security package).

 

Following the sale, the Group expects to realise savings of circa £0.2
million per annum in respect of running costs, business rates and other
expenses related to Pennant Court.

As a result of the aforementioned facilities review, the Group will also
terminate its office lease in Stevenage this month and is in the early stages
of negotiations to surrender another leased premises. The Group will continue
to have sufficient facilities to service its order book and pipeline
opportunities with 30,000 square feet of retained facilities in Cheltenham
alone.

 

Enquiries:

 

 Pennant International Group plc                    www.pennantplc.co.uk (http://www.pennantplc.co.uk)
 Philip Walker, CEO                                 +44 (0) 1452 714 914

 David Clements, Commercial & Risk Director

 WH Ireland Limited (Nomad and Broker)              www.whirelandcb.com (http://www.whirelandcb.com)
 Mike Coe                                           +44 (0) 20 7220 1666

 Sarah Mather

 Walbrook PR (Financial PR)                         paul.vann@walbrookpr.com (mailto:paul.vann@walbrookpr.com)
 Paul Vann                                          +44 (0)20 7933 8780

 Tom Cooper                                         Mob: +44 (0)7768 807631

 

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